Question: Question 2. [20 points] Consider a competitive firm with the short-run cost function C(q) = 100 + 4q2. The firm faces a market price of

Question 2. [20 points] Consider a competitive firm with the short-run cost function C(q) = 100 + 4q2. The firm faces a market

price of p for its output. (a) What is the minimum value

of p necessary for the firm to earn profits? Illustrate your answer

Question 2. [20 points] Consider a competitive firm with the short-run cost function C(q) = 100 + 4q2. The firm faces a market price of p for its output. (a) What is the minimum value of p necessary for the firm to earn profits? Illustrate your answer on a diagram. [2 points](b) Below what value of p will the firm shut down in the short run? Illustrate your answer on a diagram. [2 points] (c) Suppose a specific tax of t (t

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